Reports from across the country indicate that the underlying strength of the trade is undiminished, with bullocks making €4.20-4.25/kg, but the top of €4.30/kg may no longer be possible.
t’s a similar story on the heifer side, with the general consensus being that quotes going forward will now not exceed €4.30-4.35/kg.
Some of those with beef to sell last week for killing this week may have squeezed an extra few cents out of their local processor, but the word is that from next week prices will solidify around those lower bases.
That said, I’m still hearing of sellers securing flat prices or deals where base prices also include a minimum.
As always factory quotes are dictated by the balance between demand and supply. On June 25 the kill stood at 30,259, but by July 25 it had risen to 32,939, with 33,573 processed the previous week.
Despite the gradual increase in supplies, the market remains in balance, with one farmer making the point that factories “are still trying to get a handle on what cattle are out there”.
On the demand side one west of Ireland plant operated on Saturday so as to be sure that with this being a four-day week, they could be confident of having enough product for their various orders.
The reality is that numbers will continue to come given we are into August and February 2019-born calves will be up on the 30-month limit this month.
If you have bullocks and heifers coming up on that limit, you face a choice.
Do you kill now under 30 months and take the quality bonus of 20c/kg down as far as O=, with any grading O- getting a 12c/kg bonus?
Or do you gamble that base prices in general will hold and go for a heavier carcase, even though between 30 and 36 months that 20c/kg bonus drops to 12c/kg, with no bonus payable on O- stock.
Speaking as a farmer the temptation has always been to get as much of the weight potential out of the animal as possible.
In the years when prices were not what they are now, that was probably not the best option, but with both prices and demand strong that temptation may yet see more cattle slaughtered in the 30- to 36-month category this back end than would normally be the case.
Do the sums carefully, especially if feeding.
